GMO's Grantham Says Fed Can't Stop Stock Crash

The video discusses the behavior of super bubbles, highlighting how they typically fall below trend and remain there. It contrasts this with the Greenspan era, where such trends were halted. The 2000 market decline, including the NASDAQ and Amazon, is examined, noting the Federal Reserve's intervention. The video concludes with predictions for current market trends, suggesting that even with Federal Reserve efforts, a decline to trend levels is likely.

What is a characteristic behavior of super bubbles according to the transcript?

• They always stay above trend.

• They go below trend and stay there for a while.

• They never deviate from the trend.

• They burst and never recover.

During the market crash of 2000, by what percentage did the NASDAQ decline?

• 100%

• 92%

• 82%

• 50%

How did the Federal Reserve respond to the market decline in 2000?

• They sold off government bonds.

• They intervened to stop the decline at the trendline.

• They increased interest rates.

• They did nothing.

What was the percentage decline of Amazon during the 2000 market crash?

• 50%

• 82%

• 100%

• 92%

What is the speculated trend level for the current market according to the transcript?

• 3000

• 2500

• 2000

• 1500